Insurance is filled with acronyms and abbreviations that confuse those new to the industry.
Here is an explanation of some of the most common full forms used in insurance:
- P&C - This stands for "Property and Casualty" insurance. This refers to insurance policies that protect individuals and businesses from losses and damages to property and liabilities from incidents arising from property damage or bodily injury. Common P&C insurance policies include auto, homeowners, renters, and business insurance.
- L&H - This is short for "Life and Health" insurance. L&H insurance provides financial protection by paying benefits in the event of death, illness, or disability. Common policies include term life, whole life, universal life, and health insurance.
- E&O - This is short for "Errors and Omissions" insurance. Also known as professional liability insurance, E&O protects professionals like doctors, lawyers, and architects from liability arising from errors and omissions made during their service. It covers the costs of defending lawsuits and damages awarded.
- D&O - This stands for "Directors and Officers" liability insurance. D&O insurance covers legal costs and damages arising from wrongful acts committed by directors and officers of a company. It protects their assets in lawsuits charging mismanagement, improper self-dealing, or other allegations.
- BI - "Business Interruption" insurance compensates policyholders for income lost due to disaster-related suspension of normal business operations. It covers operating expenses, payroll, taxes, and loan payments during this period.
- WC - This is short for "Workers' Compensation" insurance. WC insurance covers medical care, rehabilitation costs, lost wages, and death benefits for employees injured at work. The coverage is regulated by state laws and required of almost all employers.
- CGL - This stands for "Commercial General Liability" insurance. CGL policies protect businesses from financial loss due to bodily injury, property damage, personal injury, and advertising injury caused by their operations, products, or services.
- BOP - "Business Owner's Policy" packages commercial property and liability coverages into one policy for small and mid-size businesses. This combines building, contents, liability, and business interruption insurance.
- UM/UIM - This is "Uninsured/Underinsured Motorist" coverage. UM/UIM protects policyholders involved in an accident caused by a driver with no or insufficient insurance to pay for damages.
- TPA - "Third Party Administrator" manages services like claims processing and administrative services on behalf of an insurance company. TPAs provide these services under contract rather than the insurer handling them in-house.
- IRDAI:-The stands for the "Insurance Regulatory and Development Authority of India." IRDAI is the regulatory body overseeing the insurance industry in India. It regulates, promotes and develops the insurance sector.
- AV - "Actuarial Value" is the percentage of total average costs for covered benefits that a plan will cover. This measure allows comparison of different plans to assess the relative amount of cost-sharing a policyholder can expect to pay.
- ACA - "Affordable Care Act" is the comprehensive health care reform law enacted in 2010 under President Obama. It expanded health insurance coverage through mandates, subsidies and health insurance exchanges.
- ACO - An "Accountable Care Organization" is a group of healthcare providers who agree to be accountable for the cost and quality of care for a defined patient population. This care coordination model aims to improve outcomes and lower costs.
- APTC - "Advanced Premium Tax Credit" under the ACA provides eligible individuals subsidies to reduce monthly premium costs when buying insurance on an exchange. The amount is based on income level.
- CAC - A "Certified Application Counselor" is an individual trained to help consumers as they look for health coverage options through the ACA exchanges. They assist in the application and enrollment process.
- CAP - The "Consumer Assistance Program" helps educate and assist consumers with health insurance questions and problems. CAPs operate in many states to aid public understanding of new options under the ACA.
- CCIIO - The "Center for Consumer Information & Insurance Oversight" is a part of CMS that helps oversee and implement provisions of the ACA at the federal level. It manages health insurance exchanges and other insurance regulations.
- CDC - The "Centers for Disease Control and Prevention" is the nation’s public health protection agency that conducts critical science, provides health information, and responds to health emergencies—the CDC partners with state health departments and insurers to share data and strategies for population health improvement.
- FSA - A "Flexible Spending Account" allows employees to set aside pre-tax dollars to pay for qualified medical expenses not covered by insurance. FSAs provide a tax-advantaged way to pay for health care costs.
- HCR - "Health Care Reform" refers to the Patient Protection and Affordable Care Act of 2010, which enacted significant changes in health insurance regulation, coverage, and subsidies. It is often shortened to just "Health Reform."
- HCBS - "Home & Community Based Services" refers to long-term care services enabling seniors and disabled people to live independently at home rather than in an institution. Medicaid HCBS waiver programs provide federal matching funds.
- HHS - The "U.S. Department of Health & Human Services" oversees the implementation of health insurance reform and many essential public health and human services programs at the federal level.
- HIPAA - The "Health Insurance Portability and Accountability Act" enacted standards for protecting sensitive patient health information. It also prevented health insurance discrimination against those with pre-existing conditions.
- HIM/HIX - The "Health Insurance Marketplace," also called the "Health Insurance Exchange," provides a portal for individuals and small businesses to shop for ACA-compliant health plans and enrol online.
- HMO - A "Health Maintenance Organization" is a managed care plan that provides comprehensive health care to members through a network of doctors, hospitals, and providers. HMOs emphasize preventive care and cost containment through managed benefits.
- HRP - A "High-Risk Pool" is a state-based program providing a health insurance option for individuals with pre-existing conditions who couldn't get coverage in the individual market before the ACA.
Also read the following:
Share and subscribe to the blog.